After a difficult year, the Community of Valencia started to recover in 2021. The pandemic disrupted activity, yet per capita income rose compared with 2020, though it remained below the national average and well behind the wealthier autonomies. The gap widened rather than closed, a reminder that the regional economy still faced structural challenges even as some sectors picked up momentum.
This interpretation comes from Spain’s Regional Accounting data, published by the National Institute of Statistics. The numbers highlight persistent disparities across autonomies and the uneven pace of rebound after the Covid shock.
Last year, GDP per capita in Valencia stood at 22,289 euros, a gain of 1,509 euros over 2020. The 2020 figure had fallen by 2,343 euros due to the pandemic restrictions that squeezed activity. In other words, income was still about 834 euros below the pre-pandemic level.
In the same period, a chart of regional GDP shows how Valencians lag behind the national average, even as the wider country enjoyed a gradual return to growth. The latest data indicate that Valencians earned around 87.4 percent of the national GDP per capita in 2021, amounting to 25,498 euros on average for Spain overall. That means every resident of Valencia was roughly 3,209 euros poorer than the typical Spaniard.
There is a long-term trend worth noting: since 2019, the year before the pandemic, Valencia’s GDP per capita has hovered around 87.5 percent of the national level. While Valencia did not fall as sharply as some other regions in 2020, the recovery still lagged behind, and the post-pandemic gap persisted. Analysts point out that population growth in the Community has contributed to the apparent widening of inequality, complicating the redistribution of wealth created within the region.
When comparing across autonomies, Valencia remains near the lower end of the spectrum in wealth, yet closer to the mid-pack in some measures of activity. Valencians are about 3,383 euros richer than those in Andalusia, but still far behind Madrid, where GDP per capita reached 34,821 euros. Other regions show higher per-person income: the Basque Country around 32,430 euros, Navarre around 31,024 euros, Catalonia near 29,942 euros, and Aragon close to 28,912 euros. These figures illustrate the uneven spread of prosperity across Spain and the persistent role of regional economic structure in shaping well-being.
As of the latest regional accounts, estimates for GDP by province remain unavailable, making it harder to determine whether provinces like Alicante lag further behind. The 2019 figure for the province hovered around 19,944 euros, which was about 75.4 percent of the national average and dropped to 17,999 euros in 2020 amid the pandemic.
Industry and services led the rebound, though the pace varied by sector. Commerce and hospitality, among the hardest hit in 2020, moved from a steep contraction to a positive growth path in 2021. Specifically, trade and hospitality turned from a 22.9 percent decline in 2020 to a 14.4 percent increase in the following year. Yet the recovery remained incomplete as normalization did not finish by early 2022.
The manufacturing sector also rebounded, shifting from a 13.8 percent decrease to an 8.2 percent rise. Other areas, including industry, computing, and contact services, posted positive gains, while administrative services and public administration improved as well. Agriculture rose modestly, whereas construction saw negative growth for the year.
Looking ahead, analyses from major financial institutions suggest Valencia’s GDP could advance around one percent in the coming year, though tourism could face headwinds if restrictions re-emerge or consumer confidence softens. The broader regional recovery remains mixed, with certain sectors showing resilience while others remain vulnerable to external shocks.
Overall, the data highlight a recovery with notable strength in some unadjusted measures while still reflecting persistent gaps with the country’s most prosperous regions. The regional picture underscores the need for policies that boost productivity, attract investment, and improve the efficiency of wealth distribution to raise living standards for Valencians.